Rental Property Foreclosures

What happens to the tenants when a landlord allows the rental property to go into foreclosure? This is a question that has recently become more and more common as the sheer number of foreclosures continues to rise. Some statistics show that nearly 40% of people losing their home to foreclosure are indeed renters.

It used to be that the tenants' lease agreements were wiped out by the foreclosure, and the new owner (once the property is sold) did not need to honor that lease agreement. This meant that many tenants were forced to vacate the property. In light of this problem, new laws were enacted that kept the lease agreement intact after a foreclosure of rental property, so long as the lease was signed prior to the notice of foreclosure.

See the article below for more information on the rights of tenants who rent properties that go into foreclosure.

The foreclosure crisis affects almost as many renters as homeowners. When landlords default on their mortgages, innocent tenants often end up evicted. Research by the National Low Income Housing Coalition shows that 40% of households facing eviction are renters.

I live in Florida and am renting a home where I have a lease agreement that expires in six months. I was just notified that this property is going to be foreclosed. How long will the foreclosure process take, and will I be forced to vacate the property before my lease agreement ends? Do renters have any rights in this situation?

I’ve been leasing a condo in Florida for years and I just found out that the owner defaulted on his mortgage. Do I have any rights? How long can I say in the condo? Can the bank just lock me out of my home?

I’m looking to buy a house in upstate NY that is in foreclosure. It is a two-family home and there are currently tenants in both halves. I would like to get rid of the tenant who is paying less and live in that unit myself. Can I do this? What is the tenant foreclosure law in New York?

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